Apcotex Industries Limited Recorded A 9.8% Miss On Revenue: Analysts Are Revisiting Their Models

Shareholders might have noticed that Apcotex Industries Limited (NSE:APCOTEXIND) filed its third-quarter result this time last week. The early response was not positive, with shares down 7.1% to ₹489 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at ₹2.6b, statutory earnings were in line with expectations, at ₹20.82 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Apcotex Industries

Taking into account the latest results, the current consensus from Apcotex Industries' dual analysts is for revenues of ₹14.4b in 2025. This would reflect a major 34% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 82% to ₹21.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹14.7b and earnings per share (EPS) of ₹23.85 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

What's most unexpected is that the consensus price target rose 9.9% to ₹527, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Apcotex Industries' rate of growth is expected to accelerate meaningfully, with the forecast 27% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 18% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Apcotex Industries to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Apcotex Industries that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.